Lancaster Colony Corporation
Lancaster Colony Corporation Fundamental Analysis
Lancaster Colony Corporation (LANC) shows weak financial fundamentals with a PE ratio of 26.31, profit margin of 9.25%, and ROE of 17.79%. The company generates $2.0B in annual revenue with weak year-over-year growth of 2.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 72.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze LANC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentLANC demonstrates superior asset utilization.
Valuation Score
WeakLANC trades at a premium to fair value.
Growth Score
ModerateLANC shows steady but slowing expansion.
Financial Health Score
ExcellentLANC maintains a strong and stable balance sheet.
Profitability Score
ModerateLANC maintains healthy but balanced margins.
Key Financial Metrics
Is LANC Expensive or Cheap?
P/E Ratio
LANC trades at 26.31 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, LANC's PEG of 4.38 indicates potential overvaluation.
Price to Book
The market values Lancaster Colony Corporation at 4.58 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.53 times EBITDA. This signals the market has high growth expectations.
How Well Does LANC Make Money?
Net Profit Margin
For every $100 in sales, Lancaster Colony Corporation keeps $9.25 as profit after all expenses.
Operating Margin
Core operations generate 11.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.79 in profit for every $100 of shareholder equity.
ROA
Lancaster Colony Corporation generates $13.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Lancaster Colony Corporation produces operating cash flow of $293.91M, showing steady but balanced cash generation.
Free Cash Flow
Lancaster Colony Corporation generates strong free cash flow of $308.37M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.19 in free cash annually.
FCF Yield
LANC converts 6.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How LANC Stacks Against Its Sector Peers
| Metric | LANC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.31 | 23.25 | Worse (Expensive) |
| ROE | 17.79% | 1240.00% | Weak |
| Net Margin | 9.25% | -9728.00% (disorted) | Weak |
| Debt/Equity | 0.04 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 2.72 | 2.54 | Strong Liquidity |
| ROA | 13.54% | -203388.00% (disorted) | Strong |
LANC outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Lancaster Colony Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.11%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
5.35%
Industry Style: Defensive, Dividend, Low Volatility
GrowingFCF CAGR
27.30%
Industry Style: Defensive, Dividend, Low Volatility
High Growth